India: The Engine of the Asian Century Faces Challenging Times
India is increasingly being seen as the driving force behind what many are calling the Asian century. The statistics paint an optimistic picture; India is the world’s most populous nation and one of its fastest-growing major economies. With a tech industry valued at $283 billion and employing over five million people, India is a crucial player in the digital economy. Plus, its wealth of young, educated workers is becoming even more appealing to global companies seeking cost-effective partners.
However, within this growth story lies an overlooked issue. Data from Gallup’s 2026 Global Workplace report reveals worrying declines in employee engagement in India, which has dropped seven points in a single reporting cycle—much steeper than the global average. Currently, just 17% of employees feel they are thriving, compared to 34% worldwide. Even traditionally strong areas, like job climate, have seen setbacks.
On a more granular level, South Asia, where India has the largest workforce share, experienced the sharpest decline in manager engagement globally—an eight-point drop. Managers, who play a crucial role in turning ambitions into actions, are facing increasing struggles. This situation is urgent and needs immediate attention before it escalates into a larger crisis.
A Gallup report, in cooperation with the National HRD Network, highlights cultural strengths and risks identified by senior HR leaders. While 61% noted ethics and compliance as cultural strengths, 45% flagged performance management as a risk, and 44% pointed to the challenges of adaptability in rapidly changing markets. This indicates a gap in India’s management capabilities, complicating efforts to thrive in a competitive environment.
The problems faced by managers today reflect a broader shift in workplace dynamics. Many experienced leaders are being replaced or having their roles redefined in ways that dilute their authority and complicate their responsibilities. As companies trim their management layers, remaining managers often find themselves overwhelmed, taking on roles that expand far beyond traditional boundaries without the necessary support.
In India’s tech sector, rapid changes have made the role of the middle manager particularly challenging. Major companies have cut thousands of mid and senior roles, leading to a management structure that’s become overly stretched. The responsibilities now on managers include everything from team coaching to crisis management, often without clear guidance on how to succeed in their redefined roles.
As managers are asked to oversee larger teams that may be spread out across cities, the lack of clarity about their authority adds a layer of confusion. This disorientation can lead to disengaged employees, compounding the challenges organizations face. According to recent reports, many Indian workers are experiencing feelings of sadness, anger, and loneliness, with only 17% feeling they are thriving—significantly lower than the global average.
The issues present in India offer insight into similar trends occurring worldwide. The flattening of organizational structures, aiming for cost reduction and improved agility, often overlooks the downside of stripping layers away without providing the necessary support for those remaining. This not only affects individual wellbeing but also impacts entire teams and organizations.
Looking ahead, the key question should not be whether to flatten organizations but how to do so without dismantling the essential support systems that ensure successful management. India’s rich talent pool, strong values, and demographic momentum are still in place; what’s needed is a shift in how the management layer itself is regarded—not just as a cost center but as a vital component of organizational success.
India is positioned to lead in the Asian century, but the managers responsible for driving growth must be provided with the tools and clarity they need. As they face increasing pressures, their disengagement will ripple through their teams and the essential conversations necessary for progress will become less frequent. This rising tide of disengagement is not just a problem for individual managers; it poses a risk to the entire growth narrative of the country.
